Bumi allows Erin one-off Oyo cargo offtake to enable its debt payment

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Bumi Armada Berhad (“Bumi Armada”) refers to its announcements dated 21 June 2017 and 9 August 2017 on the above matter.

Further to a meeting with the representatives of the Department of Petroleum Resources (“DPR”) of Nigeria and Erin Petroleum Nigeria Limited (“EPNL”), Bumi Armada (Singapore) Pte Ltd and Armada Oyo Limited (“AOL”) have permitted the continuing flow of produced oil into the Armada Perdana FPSO cargo tanks and a one-off cargo offtake. A substantial portion of the proceeds from sale of the said cargo will be used for payment to AOL in partial settlement of outstanding amounts due from EPNL to AOL.

Notwithstanding the foregoing, the suspension of services under both the Operational and Maintenance Service Contract and Bareboat Charterparty Contract remains in place.

Bumi Armada continues to engage with EPNL in an effort to seek an amicable solution for repayment of the total outstanding amounts.

 

Source: Press Release